Financial hardship guidelines promise renewed help for ratepayers in distress, while councils’ financial concerns mount.
Photo by
Megan Fisher
New guidelines to help ratepayers experiencing hardship have been enacted by the Victorian Government amid rising concerns about councils’ financial sustainability.
Hold tight - we’re checking permissions before loading more content
Local Government Minister Nick Staikos announced the updated standards, designed to better support residents facing financial difficulty, family violence and economic abuse, came into effect on February 5.
“These hardship guidelines will ensure councils treat ratepayers who are dealing with difficult financial or personal circumstances with compassion, fairness and understanding,” Mr Staikos said.
Flexible rate payment options developed to ease money challenges, such as deferrals, waivers or payment plans, are included in the guidelines.
The guidelines support councils to refer ratepayers to a financial counsellor for assistance, helping those in financial distress.
A local government’s responsibility to provide easy online and in-person access to its hardship policies and application processes has also been clarified.
“By providing clear guidance, we’re giving councils the tools they need to support vulnerable Victorians facing prolonged hardship,” Mr Staikos said.
Rural Councils Victoria chair Rob Amos said all 34 member councils already had hardship provisions in place, and actively worked to alleviate resident stress.
Rural Councils Victoria chair Rob Amos.
“Councils care deeply about their communities, and we recognise that many people, particularly those affected by recent natural disasters and ongoing drought, are under significant financial pressure,” Cr Amos said.
“Where council policies or approaches differ from those of the state government, our members will of course seek to align where possible.”
Four principles under the guidelines are mandatory to implement, with the ultimate intention of discouraging councils from charging interest for those under hardship arrangements.
Councils are also strongly encouraged to consider reducing debt collection costs, and take a “place-based approach” to addressing local hardship factors.
Cr Amos said RCV welcomed a consistent approach to the issue, but hoped the government would support councils through any required transitions.
“Many rural councils have limited capacity to implement significant and often costly system changes,” he said.
The guidelines follow mounting pressure on local government, with a Victorian Auditor General’s Office report last year finding key financial sustainability factors were declining across most councils.
In the 2026-27 financial year, the Victorian council rate cap will be 2.75 per cent, down from three per cent this financial year.
29°C